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Should I Refinance My Home

By Tom Gainor, Mortgage Lender | 7/29/19 

Refinancing your mortgage can save you money. That is true in many cases but timing, personal circumstances and market conditions are key components in the refinancing equation. 

Factors to consider

How Long You Plan to Stay in the Home

The first step in deciding whether or not to refinance is to estimate how long you plan to stay in your home. If you plan to move in the next few years it may not make sense to pay for all of the closing costs just to lock in a lower rate. In that instance you may not recoup the money before you end up moving. On the other hand, if you plan to stay in your home for many years, you may easily recoup the cost of refinancing in lower interest payments over the life of the loan.

Interest Rates 

One of the biggest factors in determining whether or not to refinance is the interest rate. For many homeowners now is the time to refinance because rates are near historically low levels. The difference between your current interest rate and the rate that you refinance at will be a determining factor in whether or not it makes sense to refinance.  

Tip: If you have a relatively low mortgage balance, refinancing and reducing the loan term may enable you to pay less in interest while only moderately increasing your monthly payment.

Home Value

If the value of your home has gone up you might also get some benefit from refinancing. In this scenario, the value of your home has increased such that you have more equity in the home. In this case you could consider doing a cash-out refi which can be helpful to pay off high-interest debt like credit cards or student loans.  

Refinancing your mortgage can be a money-saving move in the right situation. But, as you’ve read, there are many factors that need to be taken into consideration. Utilizing a refinance calculator is a nice place to start and you can find one on our website at However, we also recommend speaking with your lender to see if refinancing makes sense based on your financial and personal goals.


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